VINCI's Traffic Surge: A Steady Path to Growth

VINCI, the global player in concessions, energy, and construction, recently reported a significant surge in traffic for both VINCI Autoroutes and VINCI Airports in October 2024. This article delves into the key factors driving this growth and explores the implications for investors seeking stable, predictable returns.

VINCI Autoroutes experienced a notable increase in heavy vehicle traffic, which contributed to the overall traffic growth in October 2024. Heavy vehicles saw a 4.9% increase compared to the same period in 2023, benefiting from one additional working day. This surge in heavy vehicle traffic helped reduce the contraction in total traffic year-to-date to -0.5%. This trend aligns with the author's preference for stable, predictable investments, as it demonstrates a consistent and steady growth trajectory.

VINCI Airports also witnessed a remarkable acceleration in traffic, particularly on routes with China. The reopening of many routes between Kansai International and major Chinese cities was accompanied by a sharp increase in seat supply from several Chinese and Japanese companies. This led to a significant increase in traffic with China, up +90%, with strong growth in routes with Shanghai (+61%) and Beijing (+79%). Passenger numbers on other regional segments and domestic routes also remained strong. This development underscores the importance of strategic route reopenings and increased airline capacity in driving traffic growth.



The strong performance of routes with China, particularly with Shanghai and Beijing, significantly contributed to the accelerated recovery of traffic in Japan for VINCI Airports in October 2024. This was accompanied by a sharp increase in the supply of seats for several Chinese and Japanese companies, leading to a +90% increase in traffic with China. Consequently, passenger numbers on other regional segments such as Hong Kong (+35%), Taiwan (+15%), and South Korea (+4%) also remained strong, along with domestic routes.

The clear recovery in regional traffic for Santiago de Chile airport, supported by an increase in the offer proposed by several companies, including LATAM (+21%) and Avianca (+24%), contributed to the overall traffic growth for VINCI Airports in October 2024. The increase in seat supply and demand for routes with Spain also added to the strong traffic growth.

In conclusion, VINCI's traffic surge in October 2024 highlights the company's steady and consistent growth trajectory, aligning with the author's investment preferences for stable, predictable returns. The strategic route reopenings, increased airline capacity, and strong regional traffic growth demonstrate the company's ability to capitalize on opportunities and adapt to changing market dynamics. As investors seek enduring and lucrative investments, VINCI's performance serves as a testament to the value of 'boring but lucrative' stocks in a balanced portfolio.